DJIA vs the Fed

StockTiming.com by Marty Chenard

DJI versus the Fed. ...

This is an update of last week's long term DJI picture.   It is worth keeping in mind as the Fed goes all out in trying to make sure QE money is there long enough for the economy to catch on by itself.

Here is the problem:  From a cycle stand point, the DJI is overdue for making a downside move toward its lower (expanding wedge) support.  The Fed is under the belief that they can erase economic ebb and flows by throwing enough money in the mix.

Who knows how long they can pull this off?    At some point, the differential between where the market is and should be will be too wide too hold up.   No one knows where that is at this point, and the Fed thinks that it will never get there.  

This is the predicament the Federal Reserve is in now.   They want to keep pumping in money until the economy can function on its own without QE money, but they are running out of time due to where the DJI is in its cycle.

                        This chart shows the DJI plotted in a semi-log format.

This has been posted for Educational Purposes Only.   Do your own work and consult with Professionals before making any investment decisions. 
Past performance is not indicative of future results